Struggling to pay school Fees?
Below, you will find the answers to our most commonly asked questions about the Tax Education Benefit powered by EdNVest. If you are struggling to pay school fees, this existing SARS initiative is an essential money-saving initiative for every parent and guardian helping their children and loved ones through education,
Please click on the category that applies to you, to help you with your query.
Who would qualify as my relative?
My Relative is any of the following: My spouse ; My own children; My spouse’s children; My adopted children; Any person in my OR my spouse’s immediate family – who is not further than 3 generations from me (an example: I am a grandmother, and I pay for my grandchild’s education – my grandchild is my relative)
What is Basic Education?
Basic Education is Grade R to Grade 12 OR a qualification to which an NQF level from 1 up to and including 4 has been allocated in accordance with the National Qualifications Framework Act
What is Tertiary Education?
Tertiary Education is a qualification to which an NQF level from 5 up to and including 10 has been allocated in accordance with the National Qualifications Framework Act
What is the maximum benefit amount for Basic Education?
The maximum Benefit amount is R20 000 per relative per annum. If my relative has a disability, the amount increases to
R30 000 per relative
What is the maximum benefit amount for Tertiary Education?
The maximum Benefit amount is R60 000 per relative per annum. If my relative has a disability, the amount increases to R90 000 per relative
What is a Disability?
‘Disability’ means a moderate to severe limitation of your relative’s ability to function or perform daily activities as a result of a physical, sensory, communication, intellectual or mental impairment, if the limitation – (a) Has lasted or has a prognosis of lasting more than a year; and (b) Is diagnosed by a duly registered medical practitioner in accordance with criteria prescribed by the SARS Commissioner
What should I do if my relative has a Disability and I want to claim the increased Benefit Amount?
I need to download the “ITR-DD” SARS form from the platform and I must complete the document as indicated. Then I need to take the form to complete Part B by a duly registered medical practitioner specially trained to deal with the applicable disability. Once done, I need to upload the document onto the platform when applying for the Benefit.
What if I cannot find the school / institution on the EdNVest Platform where my Relative studies?
I need to contact the EdNVest Support team – they will assist to find out if the school / institution is correctly registered as per the SARS regulations. If the School / Institution is not correctly registered as per the SARS Requirements, then the Benefit will not be compliant.
How should I calculate the benefit amount for my relative?
I must calculate what the actual cost is going to be for my Relative’s studies for the Tax Year. As an example : I must add all the costs for my Relative’s Education Expenses for the period 1 March 2020 up to 28 February 2021
Can I include expenses for Sport Equipment, Tours and Excursions?
No. The expenses which I claim for, has to enable / assist the relative to study
How many relatives can I claim for?
There is no limit on the number of relatives that I can claim for. As long as I am indeed paying for their education
Which conditions must be met in order for the Benefit to be compliant?
My remuneration proxy must be R600 000 or less;
My Relative’s studies must be done at a recognised educational or research institution; There must be a bona fide bursary;
The purpose of the studies must be to gain knowledge.
Why should I upload my proof of payments for all the expenses which I incurred during the year for the Benefit?
The EdNVest Platform allows you to upload any proof of payments in a simple, convenient manner; If SARS requests any of the documents, I can log into the platform and view, download or print any of the expenses which I have previously uploaded.
What if I do not upload my Proof of payments for the expenses which I incurred for my Relative’s studies?
The Expense Tracker has been provided for my convenience, and I can upload the proof of payments so that I can access them at any time.
If SARS requires any of the proof of payments, then I would need to locate them (if I still have them) and provide them to SARS.
It is my own responsibility to account to SARS.
Which Expenses can I include when calculating my Relative’s Education Expenses for the Tax Year?
Tuition Fees; Registration Fees; Examination Fees (extra tutorial lessons and classes) Equipment & School uniforms (calculators, laptops, stationery, etc);
Accommodation (while my Relative is studying if NOT at my own home);
Meals / meal vouchers (whilst my Relative is studying) ;
Transport (from residence to learning institution and back);
In other words: Any expense that assists my Relative to study during the Tax Year (from 1 March to 29 February)
How many Benefits can I have?
I have can one Benefit per annum for each of my Relatives for which I am paying towards their studies.
What if my actual expenses for my relative’s education for Basic Education exceeds the maximum amount of R20 000 for the year?
If my total expenses for my relative’s costs for Basic Education is going to be R45 000, I can still only apply for a benefit up to the maximum allowable amount of R20 000.
How is the EdNVest Admin Fee calculated?
If the Monthly Estimated PAYE Saving is less than R300 then the Monthly EdNVest Admin Fee is R30; OR
If the monthly PAYE saving is more than R300, then the Monthly EdNVest Admin Fee is 10% of the Monthly Estimated PAYE Saving.
(As an example: If my Monthly Estimated PAYE Saving is R540, then my Monthly EdNVest Admin Fee is R54)
What is my Remuneration Proxy?
It is my Remuneration from my employer during the prior year excluding the value of a taxable benefit derived from the occupation of residential accommodation.
What if I currently earn more than R600 000 for the current tax year?
I can still get the education tax benefits during the current tax year if my annual remuneration for the current tax year exceeds R600 000.
Remember: to qualify for the benefit, my remuneration for the PRECEEDING TAX YEAR should be R600 000 or less. Once I qualify– there is no restriction on my current remuneration.
My remuneration for the year ending Feb 2020 was R580 000.
I received an increase and performance bonus during July 2020 – and my remuneration for the period ending February 2020 is going to be R 675 000.
I can still qualify to receive education tax benefits for my relatives from the period March 2020 up to February 2021.
I have paid my relative’s school fees for the entire year upfront in January 2020 and received a discount for early payment. Can I still claim the amount – even though the tax year only started 1 March 2020?
Yes. Expenses paid upfront can be included in the current year, as long as the expenses were related to the current year.
My child’s school fees are R1500 per month – from January to November.
If you pay the school fees before 31 January 2020, you are eligible for a discount of 10% I paid an amount of R 14 850 on 31 January and received the 10% discount.
I can include the following amount for the benefit:
School fees paid for current tax year
|March 2020||= R1350|
|April 2020||= R1350|
|May 2020||= R1350|
|June 2020||= R1350|
|July 2020||= R1350|
|August 2020||= R1350|
|September 2020||= R1350|
|October 2020||= R1350|
|November 2020||= R1350|
|Total||= R12 150|
I can then also include an amount which I think will be relevant for the next January and February if my relative is going to be in the same school